ETI – LEGISLATION BREAKDOWN IN SIMPLE TERMS

5. Calculating the ETI
The calculation of the ETI amount claimable is based on the remuneration for that specific qualifying employee in respect of the specific month for which the remuneration is paid.
When it was determined that the employer is an eligible employer which complies with the wage regulating measure as prescribed AND the employee is a qualifying employee, the employer may calculate the ETI amount in respect of each qualifying employee (section 7).
Note: It is recommended to first determine the “qualifying month count” of each employee, to eliminate employees who already reach the 24-month count.
a) The employer must determine which qualifying month count is applicable for the specific month.
(i) If the employee qualifying month count for the specific month is less than 12, then the first part (sub-section (2) of section 7 will be used to calculate the ETI (table A below).
(ii) If the employee qualifying month count for the specific month is more than 12 but less than 24, then the second part (sub-section (3) of section 7 will be used to calculated ETI (table B below).

Monthly remuneration Table A
(1-12 month count) Table B
(13-24 month count)
< R2 000 75% of “monthly remuneration” 37.5% of “monthly remuneration” R2 000 –